Does sophistication bring benefits?

It is not unusual to hear DCM bankers on sterling deals talk about the sophisticated nature of the investor base. Issuers on roadshows also often say they feel they have the best dialogues with UK-based investors, who have often done their credit work before meetings and want to discuss details in more depth than the usual page turning of an investor presentation deck.

  • By Nigel Owen
  • 07 Sep 2017
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However, it is difficult to see how the sterling investor base has managed to turn this positive perception of them into a tangible benefit.

Until Bank of England governor Mark Carney announced the institution would buy corporate bonds as part of its quantitative easing programme in August 2016, the sterling market had been languishing in the shadows and had almost become a niche market. It competed with the likes of the Swiss franc and Australian dollar markets for non-domestic issuers’ attention.

For several years sterling pricing was too wide for issuers to consider issuing in the currency instead of dollars, or euros, or one of those other niche markets, unless they had a natural need for pounds.

But this week, one of those offshore issuers, Total, trusted the sophisticated nature of the sterling market to understand why it was taking a leap of faith with a new approach to marketing. It marketed its bond at the reoffer spread — no initial ranges, no refinement, just the number.

The positive response from those sterling investors, particularly when compared to euro investors' response when Vodafone tried to do similar in the summer, may finally see that mature approach pay dividends.

A mature response from a sophisticated investor base deserves treating to more of the same.

  • By Nigel Owen
  • 07 Sep 2017

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 315,565.94 1183 8.89%
2 JPMorgan 288,650.70 1316 8.13%
3 Bank of America Merrill Lynch 284,218.69 988 8.01%
4 Goldman Sachs 215,758.12 710 6.08%
5 Barclays 207,555.74 805 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 32,400.29 147 6.76%
2 Deutsche Bank 32,042.83 103 6.69%
3 Bank of America Merrill Lynch 28,820.43 84 6.02%
4 BNP Paribas 25,608.74 143 5.35%
5 Credit Agricole CIB 22,617.86 130 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 18,067.92 70 9.12%
2 Morgan Stanley 15,215.44 76 7.68%
3 UBS 14,195.29 55 7.17%
4 Citi 14,014.57 86 7.07%
5 Goldman Sachs 12,113.98 67 6.11%